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HomeMy WebLinkAboutO-2004-2736 . . ORDINANCE NO. 2004-2736 AN ORDINANCE AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE BY AMENDING CHAPTER 2, "ADMINISTRATION," ARTICLE II "FINANCE", DIVISION 2. "PURCHASES AND CONTRACTS", SECTION 2.81, "AUTHORITY OF CITY MANAGER TO CONTRACT FOR EXPENDITURES; LIMITS", BY INCREASING THE CITY M~NAGER'S EXPENDITURE LIMIT FROM $5,000.00 TO $25,000.00; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE THEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1. That Chapter 2, "Administration," Article II, "Finance", Division 2, "Purchases and Contracts", Section 2.81,"Authority of City Manager to Contract for Expenditures; Limits" is hereby amended and shall now read as follows: Sec. 2-81. Authority of city manager to contract for expenditures; limits. Pursuant to the provisions of Charter section 5.02 regarding purchase procedure, the city council hereby confers upon the city manager general authority to contract for expenditures, without further approval of the city council, for budgeted items not exceeding $25,000.00. All contracts for expenditures involving more than $25,000.00 must be expressly approved in advance by the city council. SECTION 2. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the city for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. . - SECTION 3. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this Ordinance shall, for any reason, be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, it is hereby declared to be the intention of the City of Council to have passed each section, sentence, phrase, or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase, or clause, or part thereof, may be declared invalid. SECTION 4. This Ordinance shall be in effect from and after its passage and approval. PASSED AND APPROVED THIS THE 10th DAY OF May, 2004. CITY OF LA PORTE ~ B~ -- Peter Griffiths, Mayor Pro-Tern ATTEST: BY:~~~ MARTHA GILLETT, City Secretary APPROVED: . e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Mav 10. 2004 Requested By: Susan Kellev J ~ Aoorooriation Source of Funds: N/A Department: AdministrationlPurchasine Account Number: N/A Report: Resolution: Ordinance: Amount Budgeted: N/A Ordinance #2004- Amount Requested: N/A Exhibits: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The City of La Porte held a charter revision election on May 5, 1990, which asked voters to approve increasing the threshold limit requiring competitive sealed bids and proposals from $3,000 to $5,000, to coincide with state statutes. This provision passed and was adopted by Council on May 7, 1990. For future increases, the ballot also included a section, which states, "Council by ordinance may increase the $5,000 limitation herein provided to conform to subsequent increases authorized by state law." The City utilized this provision on September 25, 1995, when Council increased the $5,000 to $15,000 per passed legislation of the 1993 State Legislature. The 2001 State Legislature passed legislation, effective September 1, 2001, increasing the limit on competitive sealed bids and proposals from $15,000 to $25,000. During the 02-03 fiscal year, Purchasing competitively bid thirty-seven (37) purchases, eleven (11) of which were between $15,000 and $25,000. From October 2003 to present, twenty (20) purchases were competitively bid with five (5) between $15,000 and $25,000. Statistics provided by the National Institute of Govemmental Purchasing indicate in 1997, a competitive sealed bid cost approximately $600. Calculations on recent City bids estimate from $350 (simple annual contract) to $750 for more complex bids. Using an average of $550 per bid, last year, the City would have saved $6,050. Staff Recommendation: Increase competitive sealed bid and proposal limit to $25,000. Action Required bv Council: Adopt ordinance increasing the City's competitive sealed bid and proposal limit from $] 5,000 to $25,000 as authorized by charter election. Aoproved for City Council As:enda ~1JiP!cb~a~~ ,r cl-tJ ~ Date